Mastercard (MA) - 10-24-2008
Another group of stocks to look at, credit card companies. MA, V, and AXP are all feeling the pinch from declining user spending. Even the retail benchmark, Walmart, commented on the fact that credit as a form of payment is declining a noticeable amount. I think these guys all have further to fall, as they were THAT overbought before. MA would be my favorite to short (or make bearish option plays like bear spreads) if it falls through $120. These are all just short term plays and any profits should be taken quickly, and obviously any losses should be cut off even quicker.
Suntech Power (STP) 10-06-2008
STP is a decent one, but I really just mean to look at all solar stocks, e.g. FSLR, SOL, etc. These guys were super hot last year and most have burned off well over 50% from their peak so far. Alternative energy is still a sector with a bright future though, so look for these guys to jump back to the forefront when the market gets strong again. For STP, look at how well it can hold its previous support of $30 or if it goes back down to its lower level in the low $20s. The results of the presidential election may also influence this sector since the energy policy of the future administration could greatly hinder or aid the development of specific types of energy.
Axsys Technologies (AXYS) - 09-15-2008
Bearish periods always make screening long term bullish stocks so much easier. AXYS had a pretty strong day when everything else was getting killed. If it can hold the uptrend on the weekly chart and break out of the downtrend on the daily chart, this may be a pretty strong swing trade. Ideally this one pulls back with the rest of the market and bounces back when the market bounces. That would mean to buy off support around 57.50 and look to take at least some profits at 65. In the long term, the 52 week high around 77.50 makes a lofty long term breakout goal. And of course there are always the bearish options if this one starts to tank too.
Retail Holders (RTH) - 09-04-08
Retailers, who’ve been doing so well recently, may have lost a bit today, but still aren’t looking too bad. Up against the resistance though, it doesn’t look like RTH will break out any time soon. I’ve mentioned it before, but I’ll mention it again. Don’t buy RTH itself, just use it to gauge the retail market. Along with today’s sharp drop across the broader market, look for some of the retailers that have gotten overbought to correct back a little.
Wabtec (WAB) - 07-22-2008
Wabtec "provides technology-based equipment and services for the rail industry." We all know that guys like Warren Buffett and Peter Lynch love unsexy businesses, and this company fits the bill. Of course you’ll be lucky to make any money if all you do is buy up companies in boring industries, but this one fits some of the other criteria too. WAB had a huge day today after having another good earnings call, shooting an already overbought stock even higher.
The big thing to note is the performance of the stock compared to the rest of the market. The first word that comes to mind is "domination." I typically find it easier to screen for stocks and build watch lists in down markets, since you don’t have to scan through as many rising stocks. Down markets also tend to bring even stronger corrections, so while this one is currently overextended, it’s a good one to at least put on the radar.
Berry Petroleum (BRY) - 06-17-2008
I know I talked about oil being a bubble now, but agile traders can still ride the later stages of the bubble as long as they cash out quickly when it pops. BRY is on a breakout now so if it follows through it could give some quick profits. Stop out if it breaches 57 by too much and it could be a fairly safe trade.